Jan 2022

Dhaman underlined willingness to insure Arab exports to Russia and Russian investments in the region against commercial and non-commercial risks

The Capex of Russian companies’ projects in Arab countries hit US$ 64.4 between 2003 and 2021, making up 5% of the total

The Arab Investment & Export Credit Guarantee Corporation (Dhaman) underlined its willingness to strengthen trade and investment cooperation between Arab countries and Russian Federation through its varied insurance, information, and research services.
In a working paper presented by the corporation’s Ahmad Khalil Eldabaa, Head of Research and Publishing Unit, on behalf of its Director-General Abdullah Ahmad Al-Sabeeh during the first day of the meetings of the Russian-Arab Business Council in the UAE, the corporation said the Arab-Russian relationship, over the last decades, witnessed mixed evolutions involving prosperity and stagnation due to several political and economic factors.
The paper revealed that Arab-Russian trade relations, according to UNCTAD’s data, stood at a moderate level of US$ 14.7 billion between 2011 and 2020, constituting 2.1% of Russia’s external trade and 0.8% of Arab external trade on average.
The paper added that according to the FDI Markets, the Capex of Russian direct investment projects in Arab countries during 2003-2021 hit US$ 64.4 billion, making up 5% of FDI in the region, while the Capex of Arab direct investment projects in Russia amounted to US$ 3.8 billion, representing one percent of FDI in Russia
The corporation emphasized that both sides should rely more on insurance services for exports, investment, and financing against commercial and political risks, as one of the most significant ways of promoting investment, trade and financing cooperation.
Dhaman pointed out that it provides insurance coverage for existing and new Russian investments in the region’s countries against non-commercial risks, like expropriation, nationalization, wars and civil conflicts, breach of contract by destination country and preventing money transfers. It also offers insurance coverage for Arab exports to the Russian market, with possible coverage for Arab capital and strategic imports and industrial inputs from the Russian market against political and commercial risks like importers’ bankruptcy or insolvency. The corporation has already carried out insurance commitments for Arab exports to the Russian market, and it even has existing commitments but with limited values, which the corporation is ready to develop in collaboration with actors on both sides.
It also noted that it stands prepared to provide specialized and detailed research and information to bodies concerned with promoting two-way trade, investment, and economic exchanges in general.

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